Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized United Republic of Tanzania Ministry of works Tanzania National Roads Agency (TANROADS) Southern Africa Trade and Transportation Facilitation Project (SATTFP) Resettlement Policy Framework Date: 10 th October 2012 Name and Address of Implementing Agency Tanzania National Roads Agency Airtel Building, Ally Hassan Mwinyi/Kawawa Roads Junction, P.O. Box 11364, Dar es Salaam, Tel: +255 22 21525776/2151639, Fax: +255 22 2150022, Email: tanroadshq@tanroads.org Page 1 of 52
Table of Contents PART I: Basic Information PART II: Objectives PART III: Project Description and Rationale PART IV: Legal and Institutional Description Overview Property and Land Rights in Tanzania Acquisition and Valuation of Land and Other Assets Compensation Dispute Resolution and Grievance Mechanisms Comparison to World Bank OP4.12 PART V: Compensation for Land and Other Assets Consultation and Participatory Approaches Disclosure and Notification Documentation and Verification of Land and Other Assets Compensation and Valuation Community Payments Grievance Mechanism PART VI: Implementation Schedule and Costs PART VII: Public Consultation and Disclosure Plan Data Collection Phase Implementation Phase Monitoring and Evaluation Phase PART VIII: Monitoring and Evaluation Annual Review Socio-Economic Assessment Page 2 of 52
LIST OF TABLES: Table I: Comparison of Tanzanian and World Bank Resettlement and Compensation Table II: Entitlement Matrix Table III: Indicative Outline of a RAP Budget Table IV: Indicators of RAP Impacts LIST OF ANNEXES Annex 1: World Bank Resettlement Policy Framework Annex 2: Annotated Outline for Preparing a Resettlement Action Plan (RAP) Annex 3: Sample Grievance and Resolution Form Annex 4: Sample Table of Contents for Consultation Reports Annex 5: Glossary of Terms Annex 6: Relevant Laws Page 3 of 52
ABBREVIATIONS AND ACRONYMS ATIP CDD DPs DRC HIV/AIDS M&E MEP NGO OP/BP PAPs PCDP PIU RAP RFP ROW SATTFP TANROADS TANZAM USD WBOP Accountability, Transparency and Integrity Project Community Driven Development Displaced Persons Democratic Republic of Congo Human Immunodeficiency Virus/ Acquired Immunodeficiency Syndrome Monitoring and Evaluation Monitoring and Evaluation Plan Non Governmental Organization Operational Policy/Bank Procedures Project Affected Persons Public Consultation Disclosure Plan Project Implementation Unit Resettlement Action Plan Resettlement Framework Policy Right of Way Southern Africa Trade and Transportation Facilitation Project Tanzania National Roads Agency Tanzania Zambia United States Dollars World Bank Operational Policy Page 4 of 52
PART I: BASIC INFORMATION 1. Country and Project Name: Southern Africa Trade and Transportation Facilitation Project (SATTFP) 2. Project Development Objectives: To improve the deteriorated transport infrastructure along TANZAM highway, which links the port of Dar es Salaam to the neighboring countries of Zambia, Malawi and DRC. On the Tanzanian side the road links the major towns of Morogoro, Iringa, Mbeya and Songea, it is also a link to the touristic attractions of Mikumi National Park, Udzunga Mountain forest Reserves and Ruaha National Park 3. Project Outcomes: The rehabilitated road will have some adjustments to accommodate 1.5m shoulders, provided with climbing lanes, bus stops, farm produce loading bays, motor vehicle inspections bays by traffic police force and also axial load compliance monitoring areas 4. Expected Project Benefits: Once rehabilitated the project road will smoothen the transport between Tanzania and neighboring countries, save human life as bicycle riders do not have shoulders to ride on. Riders are currently sharing the drive way with vehicles posing a safety risk. Improved road safety through removal of defects including potholes, rattling, deformation corrugations and extensive cracking. 5. Identified Project Social Risks: There are 17 in the roads right of way which are going to be affected by road rehabilitation activities Recipient: United Republic of Tanzania- Ministry of works Responsible Government/Country Agency for RPF Implementation: Tanzania National Roads Agency (TANROADS) Total Project Cost (USD million): 140,000,000 IDA/IBRD (USD million):140,000,000 Government (USD million):0 ( but to Finance total cost for RPF shown below 150,000) Other-Co-financing (USD million): NIL Total Cost of RPF (USD): 112,305 for compensation + 34,430 for facilitation = say 150,000 Project preparation (USD million): Government (USD million): Name/Contacts of Consultant/Consulting Firm who prepared RPF: Environmental BENCHMARK- Consulting Civil-Environmental Engineers P.O. Box 77222 Dar es Salaam Tanzania Tel : 0784/0754/0715-353954 +255 22 2775058 Email: admin@environmentalbenchmark.com Contact Person: Eng. Venant E.K. RWENYAGIRA Date RPF Prepared: 25 th July 2012 Date RPF Disclosed: Page 5 of 52
Country: Tanzania Country Manager: Country Director: Project ID: Date ISDS prepared: Year of project appraisal: Social Safeguards Specialist: Task Team Leader: SDN Sector Leader: Environment Category: Transport Date ISDS disclosed: Year of project closing: Is this a transferred project? [ ] Yes [ ] No Is RPF applied to financial intermediary or intermediaries financing subprojects? [ ] Yes [ ] No Is RPF applied because zone of impact of sub-projects cannot be [ ] Yes [ v ] No determined at this stage? Is the RPF applied because the zone of impact is known but the site [ ] Yes [ v ] No (location) alignments are not yet well established? Is this community driven development (CDD) project? [ ] Yes [ v] No Is this a sector-wide project with national coverage? [ v ] Yes [ ] No Is this a regional operation, with national/sub-national coverage? [ v ] Yes [ ] No Safeguard policies triggered? Applicable Environmental Assessment (OP/BP 4.01) [ v ] Yes [ ] No Natural Habitats (OP/GP 4.04) [ v ] Yes [ ] No Forestry (OP 4.36) [ v ] Yes [ ] No Pest Management (OP 4.09) [ ] Yes [ v ] No Cultural Property (OP 4.11) [ v ] Yes [ ] No Indigenous Peoples (OP 4.10) [ ] Yes [ v ] No Involuntary Resettlement (OP 4.12) [ V ] Yes [ ] No Safety of Dams (OP/BP 4.37) [ ] Yes [ V] No Projects in Disputed Areas (OP/BP 7.60) [ ] Yes [ v ] No Projects on International Waterways (OP/BP 7.50) [ ] Yes [ V ] No Page 6 of 52
PART II: OBJECTIVES The objectives of the Resettlement Policy Framework (RPF) are to: Establish the Southern Africa Trade and Transportation Facilitation Project (SATTFP) resettlement and compensation principles and implementation arrangements for intervention in the corridor; Describe the legal and institutional framework underlying Tanzanian approaches for resettlement, compensation and rehabilitation; Define the eligibility criteria for identification of project affected persons (PAPs) and entitlements; Describe the consultation procedures and participatory approaches involving PAPs and other key stakeholders; and Provide procedures for filing grievances and resolving disputes. The RPF will apply to the whole stretch from Dar es Salaam to Malawi and Zambia borders. The procedures will be carried out throughout preparation and implementation, and impacts of any potential resettlement will be included in monitoring and evaluation (M&E). When a Resettlement Action Plan (RAP) is required, it will be prepared in accordance with guidance provided in this RPF, including Detailed Measurement Surveys, Identification (Census) of PAPs/displaced persons, and Public Consultation and Disclosure Procedures (PCDP). The RPF follows the guidance provided in the World Bank Operational Policy on Involuntary Resettlement (OP4.12), as described in Annex 1. The RPF ensures that any possible adverse impacts of proposed project activities are addressed through appropriate mitigation measures, in particular, against potential impoverishment risks. These risks can be minimized by: Avoiding displacement of people without a well designed compensation and relocation process; Minimizing the number of PAPs, to the extent possible; Compensating for losses incurred and displaced incomes and livelihoods; and Ensuring resettlement assistance or rehabilitation, as needed, to address impacts on PAPs livelihoods and their well being. Page 7 of 52
PART III: PROJECT DESCRIPTION AND RATIONALE FOR RPF Description of project activities where the RPF will be applied: 1. Construction of detours to divert traffic and avoid rehabilitation in half width 2. Opening up new borrow pits (fill material) and other sources construction materials such as building sand and water for works 3. Construction of access roads to new borrow pits to be opened up by the contractor and also access road to other sources of construction materials such as building sand and water for works 4. Development of spoil tipping sites including development of the access roads to these tipping sites Land acquisition and resettlement impacts [Describe the activities that may require land take or acquiring land and other assets; relocation or displacement of persons occupying or using these lands and other assets]: 1. Opening up new borrow pits and other sources of construction materials 2. Access road to new borrow pits 3. Construction of detours to divert the traffic and avoid rehabilitation in half-width 4. Development of spoil tipping sites including development of the access road to tipping sites PART IV: LEGAL AND INSTITUTIONAL FRAMEWORK This RPF will apply the laws, legislation, regulations, and local rules governing the use of land and other assets in Tanzania. This legal and institutional framework is presented in five sections: (i) Political economy and governance in Tanzania; (ii) Property and land rights, as defined by Tanzanian law and customary practice; (iii) Acquisition of land and other assets, Page 8 of 52
including regulations over the buying and selling of these assets; (iv) Rights and compensation, in particular, the accepted norms influencing peoples basic rights to livelihood and social services; (v) Dispute resolution and grievance mechanisms, specifically the legal and institutional arrangements for filing grievances or complaints and how those grievances are addressed through formal and informal systems of dispute resolution; and (vi) Comparison with World Bank OP4.12, using equivalence and acceptability standards. i) OVERVIEW Tanzania is made up of two formerly independent countries which united in 1964. Tanzania Mainland and Zanzibar have each a different set of laws and procedures related to land and property rights. Tanzania as used herein refers to the Mainland only. Tanzania is a multi-party parliamentary democracy. The country is among the poorest nations in the World, but is rapidly developing and enjoying peace and a stable macro-economic status. The country has a central government, regional administrations and local governments. There are 21 regions, 117 rural and urban authorities and 12,500 Villages. Tanzania has an area of 945,087 km 2 and a population of 40 million growing at around 2.5% p.a. with rapid urbanization taking place. Around 30% of the population is urban. Over 80% of the population depends on agriculture, but only 2% of rural land and 20% of urban land is registered. Poverty is still rampant despite macro-economic gains in the past decades. The Constitution of the United Republic of Tanzania 1977 (as amended) in its preamble provides that Tanzania aims at building a democratic society founded on the principles of freedom, justice, fraternity and concord, in which the Executive is accountable to the Legislature composed of elected members and representatives of the people, and also a Judiciary which is independent and dispenses justice without fear or favour, thereby ensuring that all human rights are preserved and protected. The Constitution provides for legislative supremacy of Parliament and independence of the Judiciary. It also embraces the principles of rule of law, separation of powers and a pluralistic political system. Tanzania Vision 2025 expresses both hope and determination in ridding the country of poverty, disease and ignorance. It seeks to do so by achieving high and sustained growth at an average of 8 percent, and halving abject poverty by 2010 and eliminating it by 2025. The National Strategy for Growth and Poverty Reduction seeks to realize the goals of the Vision 2025. Rapid development has many times necessitated the taking over of land from its owners for investments such as infrastructure. There is a system of land acquisition and compensation based on law and practice, and many sectors have their own laws and regulation that address the question of involuntary resettlement. Tanzania has a set of solid policy, legal, and institutional frameworks for management of land and property acquisition and compensation. First, basic principles recognizing ownership of lands and resources is enshrined in the National Constitution, the Land Policy and Land Acts. These are further defined in local laws and by-laws. Page 9 of 52
ii) PROPERTY AND LAND RIGHTS IN TANZANIA The Constitution of the United Republic of Tanzania provides for the rights of citizens to own property and disallows the deprivation of one s property held in accordance with the law, unless the owner is fairly and adequately compensated. Article 24 (1) says: Every person is entitled to own property and has a right to the protection of his property held in accordance to the law. Sub-article (2) further provides that;.. it shall be unlawful for any person to be deprived of property for the purposes of nationalization or any other purposes without the authority of the law which makes provision for fair and adequate compensation. The National Land Policy of 1995, and the Land Laws emanating from it, addresses issues of: Land tenure, promotion of equitable distribution of land access to land by all citizens; improvement of land delivery systems; fair and prompt compensation when land rights are taken over or interfered with by the government; promotion of sound land information management; recognition of rights in unplanned areas; establishment of cost effective mechanisms of land survey and housing for low income families; improvement of efficiency in land management and administration and land disputes resolution, and protection of land resources from degradation for sustainable development Among the fundamentals of land policy which the Land laws seek to implement are the following: (a) To recognize that all land in Tanzania is public land vested in the President as a trustee on behalf of all citizens; (b) To ensure that existing rights in and recognized long standing occupation or use of land are clarified and secured by the law, and, (c) To pay full, fair and prompt compensation to any person whose right of occupancy or recognized long-standing occupation or customary use of land is revoked or otherwise interfered with to their detriment by the State under this Act or is acquired under the Land Acquisition Act, 1967 The Land Act and Village Land Act create three categories of land namely General Land, Village Land and Reserved Land. Besides, there is a category of hazard land. General land is described as consisting of all land which is neither village land nor reserved land. All urban land falls under this category, except land which is covered by laws constituting reserved land, or that which is considered hazard land. General land is governed by the Land Act and, hence, is under the control and jurisdiction of the Commissioner for Lands. This ministerial key person has delegated much of the powers to local government land officers. Property rights can be created over general land in terms of a granted Rights of Occupancy for a period of 33, 66 or 99 years confirmed by a Certificate of Title. Longstanding occupation of land except on government land) is recognized as conferring property rights. In the case of land acquisition all occupiers of land irrespective of whether Page 10 of 52
they have a granted right of occupancy or not, are eligible to compensation. Granted rights of occupancy carry conditions including land development and the payment of land rent. Failure to abide with these conditions can lead to the loss of the right. Village land is defined as being the land falling under the jurisdiction and management of a registered village. As Tanzania consists of a vast countryside with only a few urban areas, most land in the country is village land. Each village is required to define three land-use categories within its own borders: 1) communal village land, 2) individual and family land, 3) reserved land (for future village expansion). Village and is held under customary tenure and the government can issue customary certificates of tenure to individuals or communities where the village is surveyed and has a Certificate of Village Land. Customary tenure is akin to freehold. Reserved land is defined as land being reserved and governed for purposes subject to nine listed laws. It includes: environmental protection areas, such as national parks, forest reserves, wildlife reserves, and marine parks as well as areas intended and set aside for spatial planning and (future) infrastructure development. The Commissioner for Lands can convert land from one category to the other. By far the majority of land occupiers have no certificates of title, in part because land has to be surveyed before it can be issued with a title. However, there is a lot of de facto recognition of property rights for the majority of land occupiers. The National Land Policy (1996) of Tanzania provides guidance and directives on land ownership and tenure rights and taking of land and other land based assets. The policy stipulates organization and procedures for valuing assets and delivery of compensation. The overall aim of the policy is to promote and ensure a secure land tenure system in Tanzania that protects the rights in land and resources for all its citizen. The following principles are the basis of the land policy: All land in Tanzania is public land vested in the President as trustee on behalf of all citizen; Land has value; The rights and interest of citizens in land shall not be taken without due process of law; and Full, fair and prompt compensation shall be paid when land is acquired. iii) ACQUISITION AND VALUATION OF LAND AND OTHER ASSETS Land Acquisition The Land Acquisition Act 1967 is the principal legislation governing the compulsory acquisition of land in Tanzania. Sections 3-18 of the Land Acquisition Act 1967 empower the President to acquire land, and provide the procedures to be followed when doing so. The President is empowered to acquire land in any locality provided that such land is required for public purposes. Page 11 of 52
The procedures provided by the Land Acquisition Act include: the investigation of the land to see if it is suitable for the intended purpose; notification to the landowners to inform them of the decision to acquire their land before the President takes possession; and payment of compensation to those who will be adversely affected. The law restricts compensation to unexhausted improvements on the land excluding the land or such improvements as land clearing and fencing. This latter situation has been rectified by the Land Act 1999. If land is required for public purpose the President is required to give a six weeks notice to those with an interest in the land in question but, if the situation so demands, the notice can be shortened without the need to give explanation. After the expiration of the notice period the President is entitled to enter the land in question even before compensation is paid. The person whose land is acquired is entitled to be compensated if they so deserve as provided for under section 11 and 12 of the Act. The persons entitled to compensation are those interested or claiming to be interested in such land; or persons entitled to sell or convey the same or as the government may find out after reasonable inquiries. The Land Act 1999 clarifies and adds certain aspects to be considered when determining the compensation package. Many other laws have provisions related to land acquisition, but they will always refer back to the Land Acquisition Act and the Land Act. Some of these laws are the Village Land Act (2004), the Roads Act 2007, Urban Planning Act 2007, Land Use Planning Act 2007, Mining Act 2010 and others 1. Tanzania has a dual system of land tenure concerning public lands: (i) customary rights and (ii) Statutory rights of occupancy. Tenure rights to land can be held by individuals and by communities. Holdings of individuals can be covered by the following: Leasehold right of occupancy for varying periods e.g. 33, 66, or 99 years which must be confirmed by a certificate of occupancy; and Customary rights of occupancy that must be confirmed by a certificate of Customary Right of Occupancy (Hati ya Ardhi ya Mila) and have no term limit. Communities (Villages) are allowed to hold land and to manage it, although they do not formally own the land. Valuation The Land Acquisition Act (s.14) requires the following to be taken into account in assessing compensation (a) take into account the value of such land at the time of the publication of notice to acquire the land without regard to any improvement or work made or constructed thereon thereafter or to be made or constructed in the implementation of the purpose for which it is acquired; 1 The Constitution of the United Republic of Tanzania of 1977 (as amended), the National Land Act (No. 4 of 1999), Village Land Act (No.5 of 1999), Land Regulations 2001 Subsidiary Legislation, Land Acquisition Act (1967), Land Ordinance (1923 Cap. 113) and Town and Country Planning Ordinance (1956 Cap. 378) contain provisions related to land tenure and ownership in Tanzania. Page 12 of 52
(b) when part only of the land belonging to any person is acquired, take into account any probable enhancement of the value of the residue of the land by reason of the proximity of any improvements or works made or constructed or to be made or constructed on the part acquired; (c) take into account the damage. if any. sustained by the person having an estate or interest in the land by reason of the severance of such land from any other land or lands belonging to the same person or other injurious effect upon such other land or lands; (d) not take into account any probable enhancement in the value of the land in future; (e) not take into account the value of the land where a grant of public land has been made in lieu of the land acquired; A practice developed that since land belonged to the public, the valuation for compensation excluded the value of bare land. However, among the clarifications made in the Land Act 1999 were: (a) to take into account that an interest in land has value and that value is taken into consideration in any transaction affecting that interest; and, (b) that in assessing for compensation, the market value of the real property is taken into consideration. Current practice is guided by the Land (Assessment of the Value of Land for Compensation) Regulations, 2001, and the Village Land Regulations, 2001, which provide that the basis for assessment of the value of any land and unexhausted improvement for the purposes of compensation is the market value of such land. The market value of any land and unexhausted improvement is arrived at by the use of the comparative method evidenced by actual recent sales of similar properties, or by the use of the income approach or replacement cost method, where the property is of special nature and is not readily transacted in, in the market. Assessment can only be carried out by a qualified valuer and where the government (national and local) is involved; such assessment must be verified by the Chief Valuer in the government. Tanzania laws indicate that the current market values should be used as basis for valuation of land and properties. Regulation 3 of the Land Policy (Assessment of the Value of Land for Compensation) Regulations, 2001 and Part I-lIl of the Village Land Regulations, 2002 provide for practical guidelines on assessment of compensation. The full and fair compensation is only assessed by including all components of land quality. Presently in assessing the value of the unexhausted improvements for compensation purposes, the law emphasizes that the value should be the price that which said improvements can fetch if sold in the open market. But this in normal circumstances is lower than the replacement value but higher than the initial construction cost of the said improvements. A number of national laws have provisions requiring Environmental and Social Planning for investments that may cause adverse environmental impacts to the resource and mitigation measures for individuals affected by development activities. Agriculture and land acts provide for rights of individuals whose property may be acquired and to be compensated according to national laws. Page 13 of 52
The Local Government (District Authorities) Act No. 7, 1982 and Local Government (Urban Authorities) Act No. 8, 1982 stipulate the functions of District/Urban councils. Issues of land are included as objectives of functions and therefore part of the mandates of local government in their respective areas. The prices for cash crops will be determined as the average value over the previous year, corrected for inflation. The prices for subsistence crops will be determined as the highest value over the previous year, corrected for inflation. Crop values will be determined based on a combination of staple foods and cash crops. Specifically, the 80/20 ratio of land that a farmer typically has in food crops and cash crops is used to determine the chances s/he would lose food crop rather than a cash crop income. Another way of valuing agricultural production is through the value of stable crops to be taken as the highest market price reached during the Year. This is based on three factors: (i) Although most farmers grow staple crops mainly for home consumption, they always have the option of selling these crops to take advantage of the market; (ii) Farmers most often purchase cereals when they have run out, during the "hungry season" when prices are high. Compensating at a lower value might put the individual or household at risk. (iii) Averaging the highest price of stable foods yields a high per hectare value that reimburses for the vegetables and other foods that are commonly inter-cropped with staples, but are almost impossible to measure for compensation. iv) COMPENSATION The principal of paying compensation for land that is compulsorily acquired exists in both the constitution and in the relevant land laws. Article 24 sub-article (2) of the Constitution states as follows:.. it shall be unlawful for any person to be deprived of property for the purposes of nationalization or any other purposes without the authority of the law which makes provision for fair and adequate compensation. Under the land Acquisition Act, 1967, the government is required to pay compensation for the land taken. The compensation may be as agreed upon, or as determined under the Act. The government may in addition to compensation and with agreement of the person entitled to compensation pay compensation as well as give alternative land. There are situation where the government is compelled to give alternative land (eg in cases where land was used as a cemetery) in lieu or in addition to compensation. The land granted must be of the same value and held under the same terms as the land acquired, and must be in the same local government authority area unless the person whose land is being acquired consents to be given land elsewhere. The Land Acquisition Act does not provide for compensation where land is vacant. Besides, where land is inadequately developed, compensation is to be limited to the value of unexhausted improvements of the land. However, provisions in the Land Act 1999 over-ride or clarify those in the Land Acquisition Act. In the case of compulsory acquisition, the government is required: Page 14 of 52
To pay full, fair, and prompt compensation to any person whose right of occupancy or recognized long-standing occupation or customary use of land is revoked or otherwise interfered with to their detriment by the state under this Act or is acquired under the Land Acquisition Act; provided that in assessing compensation for the land acquired in the manner provided for under this Act, the concept of opportunity cost shall be based on the following: (i) Market value of the real property (ii) Transport allowance (iii)loss of profits or accommodation (iv) Cost of acquiring or getting the subject land (v) Disturbance allowance (vi) Any other cost, loss or capital expenditure incurred to the development of the subject land; and, (vii) Interest at market rate to be charged in case of delays in payment of compensation and any other costs incurred in relation to the acquisition. The question of documented legality is not a key consideration in entitlement to compensation. In practice at least in recent days, compensation has been paid in all cases of people who claim to be landowners and who are adversely affected by the contemplated scheme. However, the definition of beneficiaries has been taken not to include tenants. The Land (Assessment of the Value of Land for Compensation) Regulations, 2001 and the Village Land Regulations, 2001, provide for the amount of compensation to include the value of unexhausted improvements, disturbance allowance, transport allowance, accommodation allowance and loss of profits. Disturbance allowance is calculated by multiplying the value of the land by an average percentage rate of interest offered by commercial banks on fixed deposits for twelve months at the time of loss of interest in land. Transport allowance is the actual cost of transporting twelve tons of luggage by road or rail whichever is cheaper within twenty kilometers from the point of displacement Accommodation allowance is calculated by multiplying the monthly market rent for the acquired property by thirty six months. Loss of profit in the case of business carried out on the acquired property will be assessed by calculating the net monthly profit evidenced by audited accounts where necessary and applicable, and multiplied by thirty six months. Transport allowance, accommodation allowance and loss of profit do not apply where the land acquired is unoccupied at he date of loss of interest. Compensation is to be paid promptly but if it is not paid within six months it will attract an interest equal to the average percentage rate of interest offered by commercial banks on fixed deposits. Page 15 of 52
In the case of agricultural land, compensation is intended to provide a farmer whose land is acquired and used for project purposes to cover the productive values of the land, labor, and crop loss. For this reason, and for transparency, "land" is defined as an area: (i) in cultivation; (ii) being prepared for cultivation; or (iii) cultivated during the last agricultural season. This definition recognizes that the biggest investment a farmer makes in producing a crop is his/her labor. A farmer works on his/her land most of the months of the year. The major input for producing a crop is not seed or fertilizer, but the significant labor put into the land each year by the farmer. As a result, compensation relating to land will cover the market price of labor invested times the amount of time spent preparing a plot equivalent to that taken. The market price of the crop lost is considered separately. The other compensation rates cover the labor cost for preparing replacement land based on a calculated value that would cost a farmer to clear and create replacement land. This value is found by adding together the average costs of clearing, plowing, sowing, weeding twice, and harvesting the crop. Labor costs will be paid in Tanzania shillings, at the prevailing market rates. All agricultural labor activities are included for two reasons. First, all land labor will be compensated at the same rate. Second, it is difficult to forecast the growing season that would define acquisition of the land. The eventual consideration is when land compensation covers all investments that a farmer will make. In certain cases, assistance may be provided to land users in addition to compensation payments, for example, if the farmer is notified that his/her land are needed after the agriculturally critical date. Often, the timing coincides with the time when the farmer no longer has enough time to prepare another land without additional labor. Assistance will be provided in the form of labor-intensive village hire, or perhaps mechanized clearing, so that replacement land will be ready by the sowing dates. The farmer will still continue to receive his/her cash compensation so that the compensation can cover the costs for sowing, weeding and harvesting. Compensation for structures will be paid by replacing at cost, for example, huts, houses, farm outbuildings, latrines and fences. Any homes lost will be rebuilt on acquired replacement land, however cash compensation would be available as a preferred option for structures (i.e. extra buildings) lost that are not the main house or house in which someone is living. The going market prices for construction materials will be determined. Alternatively, compensation will be paid in-kind for the replacement cost without depreciation of the structure.. Compensation will be made for structures that are: (i) abandoned because of relocation or resettlement of an individual or household; and (ii) directly damaged by construction activities. Replacement values will be based on: Drawings of individual's household and all its related structures and support services; Average replacement costs of different types of household buildings and structures based on collection of information on the numbers and types of materials used to construct different types of structures (e.g. bricks, rafters, bundles of straw, doors etc.) For vulnerable groups identified in earlier section of this RPF replacement values will be based on actual replacement cost. Page 16 of 52
Prices of these items collected in different local markets; Costs for transportation and delivery of these items to acquired/replacement land or building site; and Estimates of construction of new buildings including labor required. v) DISPUTE RESOLUTION AND GRIEVANCE MECHANISMS Where there is a dispute, the government tries to reach an amicable solution through persuasion. If a solution is not found within six weeks, the Land Acquisition Act, 1967, application can be made to the High Court of Tanzania for the determination of the dispute Every suit instituted shall be governed insofar as the same may be applicable by the Civil Procedure Code and the decree of the High Court of Tanzania may be appealed against to the Court of Appeal. Since the coming into operation of the Courts (Land Disputes Settlements) Act, 2002, disputes concerning land acquisition and compensation are dealt with by the Land Division of the High Court. In the case of a dispute as to the amount to be paid, either the Minister or the person claiming compensation may refer such dispute to the Regional Commissioner for the region in which the land is situated and the decision of the Regional Commissioner shall be final. The Minister should give notice of intention to acquire the land to the persons interested or claiming to be interested in such land, or to the persons entitled to sell or convey the same. The Minister may, by notice direct the persons to yield up possession of such land after the expiration of a period of not be less than six weeks from the date of the publication of the notice in the Gazette. vi) COMPARISON TO WORLD BANK OP 4.12 Laws on land administration in Tanzania are comprehensive but differ in several ways with the Bank s OP 4.12 (Involuntary Resettlement) policy. For example, entitlements for payment of compensation are essentially based on the right of ownership, which limits the rights of non-formal occupants like slum dwellers and tenants which the Bank s OP 4.12 policy recognizes. The provision that affected persons are entitled to some form of compensation whether or not they have legal title if they occupy the land by a specified cutoff date is not explicit in Tanzanian laws although in practice these are compensated. Page 17 of 52
Table I: Comparison of Tanzanian and World Bank Policies on Resettlement and Compensation Types of affected Tanzanian Law World Bank OP 4.12 Comparison/Gaps Persons/Lost Assets Land Owners The Land Acquisition Act, the Land Act 1999 and the Village Land Act 1999 have it clearly that land owners, with or without formal legal rights, are entitled to full, fair and prompt compensation. They also get disturbance allowance, transport allowance, accommodation allowance and loss of profit if they were in actual occupation of the acquired property. Lost assets are limited to unexhausted improvements, that is the land and developments on the land. The law does not cover economic and social impacts of relocation and as such socio-economic surveys are not part of the land acquisition process Displaced persons are classified into three groups: (a) those who have formal legal rights including customary and traditional rights; (b) those who do not have formal legal rights to the land but have a claim to such land or assets provided that such claims are recognized under the law of the country (c) those who have no legal rights to the land they are occupying Land owners under categories (a) and (b) above, are among the PAPs who are entitled to full, fair and prompt compensation as well as other relocation assistance. There is no gap between Tanzania and OP 4.12 as far as those with formal legal rights and those without formal legal rights are concerned However, the lost assets in Tanzania are restricted to land and developments on land, and where relevant, loss of profits. The lost assets under OP 4.12 are much wider than land and include loss of access to livelihoods and standard of living and seeks to improve them or at least to restore them to pre-displacement levels Land Tenants/Squatters Tanzanian law does not recognize tenants as being entitled to compensation Squatters may be paid compensation on the whims of the government. In some cases however they are not paid. This include those who construct on Socio-economic impacts to PAPs are taken into consideration in preparing the RAP Tenants would be under category (b) above and are among the PAPs who are entitled to full, fair and prompt compensation and other relocation assistance Squatters may fit category (c) above and are provided resettlement assistance in lieu of compensation for the land they occupy as well as other relocation WB OP 4.12 recognises a wider spectrum of PAPs. The Tanzania spectrum is limited to those who can prove proprietary rights. It does not include tenants WB OP 4.12 includes squatters among the PAPs who are entitled to resettlement assistance in lieu of the land they occupy, as well as other assistance. Page 18 of 52
Table I: Comparison of Tanzanian and World Bank Policies on Resettlement and Compensation Types of affected Tanzanian Law World Bank OP 4.12 Comparison/Gaps Persons/Lost Assets road reserves assistance. Land Users Owners of non-permanent buildings Owners of permanent buildings Timing of compensation payments Tanzania law on compulsory acquisition and compensation is limited to those who can prove de jure or de facto land ownership. Users are not covered Tanzanian law makes no differentiation between owners of permanent and nonpermanent buildings. As long as ownership can be proved compensation is payable. Determination of compensation is based on the market value of the property. In practice though, the depreciated replacement cost approach is used, meaning that PAPs do not get the full replacement cost of the lost assets. Tanzanian law requires that compensation be full, fair and prompt. Prompt means it should be paid within six months, failure to do which attracts an interest rate equivalent to the average rate offered by commercial banks on fixed deposits. WB OP 4.12 includes displaced persons who have no recognizable legal right or claim to the land they are occupying Under the WB OP 4.12 permanent and non-permanent buildings need to be compensated. Where however, the displaced persons have no recognizable legal rights they are to be provided with resettlement assistance in lieu of compensation for the land they occupy, as well as other assistance. Cash compensation levels should be sufficient to replace the lost land and other assets at full replacement cost in local markets. WB OP 4.12 displaced persons are provided prompt and effective compensation at full replacement cost for losses of assets directly attributable to the project This is different from the Tanzanian situation where such people are not entitled to any assistance. The gap between Tanzania and WB OP 4.12 is about eligibility, which is hinged upon formal or informal ownership. While, in Tanzania, compensation is based on market value, determined using the depreciated replacement cost approach for developments on land, WB OP 4.12 requires that compensation should be sufficient to replace the lost land and other assets at full replacement cost. In terms of timing, both Tanzanian laws and WB OP 4.12 require that compensation be paid promptly. This however, rarely happens in practice as can be testified from may projects that have involved large scale land acquisition. Page 19 of 52
Table I: Comparison of Tanzanian and World Bank Policies on Resettlement and Compensation Types of affected Tanzanian Law World Bank OP 4.12 Comparison/Gaps Persons/Lost Assets Legally, compensation for the acquired land does not have to be paid before possession can be taken, but in current practice it is usually paid before existing occupiers are displaced. Calculation of compensation and valuation In practice, compensation is not paid promptly most of the time, and delays are not rectified paying the interest rate as required by the law According to the Land Assessment of the value of Land for Compensation) Regulations, 2001, as well as the Village Land Regulations, 2001, compensation for loss of any interest inland shall include the value of unexhausted improvements, disturbance allowance, transport allowance, accommodation allowance, and loss of profits. The basis for assessment any land and unexhausted improvement for purposes of compensation is the market value of such land. The market value is arrived at by the use of comparative method evidenced by actual recent sales of similar properties; or by the use of the income approach, or replacement cost method, where the property is of special nature and not saleable. WB OP 4.12 requires that the displaced persons be provided with prompt and effective compensation at full replacement cost for losses of assets attributable direct to the project. Replacement cost is the method of valuation of assets that helps determine the amount sufficient to replace lost assets and cover transaction costs. Depreciation is not to be taken into account when applying this method. For losses that cannot easily be valued or compensated in monetary terms (eg access to public services, customers and suppliers, or to fishing, grazing or forest areas) attempts are made to establish access to equivalent and culturally acceptable resources Tanzania law provides for the calculation of compensation on the basis of the market value of the lost land and unexhausted improvements, plus a disturbance, accommodation, and accommodation allowance, and loss of profits where applicable. Since depreciation is applied, the amount paid does not in most cases amount to that required to replace the lost assets. Besides, other types of assets (besides land) are not taken into consideration. Page 20 of 52
Table I: Comparison of Tanzanian and World Bank Policies on Resettlement and Compensation Types of affected Tanzanian Law World Bank OP 4.12 Comparison/Gaps Persons/Lost Assets In practice, with land an attempt is made to establish market value from recent sales, but these are usually not transparent. As for unexhausted improvements in terms of buildings and other civil infrastructure, the depreciated and earning opportunities. replacement cost approach is used Relocation and Resettlement Tanzanian laws do not provide for relocation and resettlement. However, there are a few cases where the government has provided both compensation and alternative land, but this has been done at its discretion. In general however, the government feels that it has discharged its duty once compensation is paid, and it is up to the displaced persons to resettle and reestablish themselves elsewhere. Completion of resettlement and compensation The government can, under the law, take possession of the acquired land at the end of the notice to acquire period, before paying compensation. Current practice however is such that possession is usually after the payment of compensation whereby the displaced persons are given time to vacate the land, which is usually as soon as possible WB OP 4.12 stipulate that where project impacts include physical relocation, measures should be taken to ensure that the displaced persons are: (i) provided with assistance (such as moving allowance) during relocation; and (ii) provided with residential housing, or housing sites, or, as required, agricultural sites for which a combination of productive potential, locational advantages and other factors is at least equivalent to the advantages lost. WB OP 4.12 stipulates that it is necessary to ensure that displacement or restriction to access does not take place before necessary measures for resettlement are in place. In particular, taking of land and related assets may take place only after compensation has been paid, and where applicable, resettlement sites and moving allowance have Tanzanian law provides for transport allowance for 12 tons of luggage for up to 12 kilometres from the acquired land, provided the displaced person was living on that land. In lieu of housing accommodation allowance is made in the form of rent for 36 months. Occasionally, in a discretionary manner alternative land is awarded. The Land Acquisition Act, 1967, allows the government to take possession of the acquired land before paying compensation. Current practice, endeavors to pay compensation before taking possession of the land. Page 21 of 52
Table I: Comparison of Tanzanian and World Bank Policies on Resettlement and Compensation Types of affected Tanzanian Law World Bank OP 4.12 Comparison/Gaps Persons/Lost Assets been provided to the displaced persons. Livelihood restoration and assistance There are no legal provisions requiring the government to restore livelihood or to provide assistance towards the restoration of such livelihoods. Indeed, compensation is not payable in the case of restrictions to access to areas of livelihood opportunities. Moreover there are no provisions that require the government to pay special attention to vulnerable groups or indigenous peoples WB OP 4.12 provides that the resettlement plan or policy include measures to ensure that the displaced persons are (i) offered support after displacement for a transitional period, based on a reasonable estimate of the time likely to be needed to restore their livelihood and standard of living; and, (ii) provided with development assistance in addition to compensation measures, such as land preparation, credit facilities, training or job opportunities. There are no transitional measures provided for under Tanzanian law and practice; nor are there provisions for compensation as a result of restrictions to access to livelihood. The Tanzanian law does not make provisions requiring the government to pay special attention to vulnerable groups in the administration of compensation Consultation and disclosure There scanty provisions related to consultation and disclosure in Tanzanian law. The notice, under the Land Acquisition Act, informs land owners about the President s need to acquire their land, and their right to give objections. The Land Act allows displaced persons to fill in forms requiring that their land be valued, and giving their own opinion as to what their assets are worth. WB OP 4.12 requires that displaced persons are (i) informed about their options and rights pertaining to resettlement; and, (ii) consulted on, offered choices among, and provided with technically and economically feasible resettlement alternatives. The provisions in WB OP 4.12 requiring consultation and disclosure have no equivalent in Tanzanian law and practice Since resettlement is not provided for legally, there are no provisions about informing the displaced persons about Page 22 of 52
Table I: Comparison of Tanzanian and World Bank Policies on Resettlement and Compensation Types of affected Tanzanian Law World Bank OP 4.12 Comparison/Gaps Persons/Lost Assets their options and rights; nor are they offered choice among feasible resettlement alternatives. Grievance mechanism and dispute resolution Under s. 13 of the Land Acquisition Act, where there is a dispute or disagreement relating to any of.the following matters: (a) the amount of compensation; (b) the right to acquire the land; (c) the identity of persons entitled to compensation; (d) the application of section 12 to the land; (e) any right privilege or liability conferred or imposed by this Act; (f) the apportionment of compensation between the persons entitled to the same and such dispute or disagreement is not settled by the parties concerned within six weeks from the date of the publication of notice that the land is required for a public purpose the Minister or any person holding or claiming any interest in the land may institute a suit in the High Court of Tanzania for the determination of the dispute. WB OP 4r.12 provides that displaced persons and their communities, and any host communities receiving them, are provided with timely and relevant information, consulted on resettlement options, and offered opportunities to participate in planning implementing and monitoring resettlement. Appropriate and accessible grievance mechanisms must be established for these groups The law in Tanzania does not provide for the establishment of grievance resolution mechanisms specific to particular resettlement cases. In practice the government tries to resolve grievances through public meetings of the affected persons. Page 23 of 52